Forex Analytics from LiteForex of 15.11.10: GBP: British Pound Sterling goes down at the beginning of the week

Forex Analytics from LiteForex of 15.11.10: GBP: British Pound Sterling goes down at the beginning of the week amid ambiguous external background and mixed signals

At the Forex currency market the British Pound Sterling rate goes down on Monday, while external background at the market continues to be ambiguous.

Technical signals for the currency are mixed and in addition the Pound is under pressure caused by the expectation of the UK data publication this
week.

Forex forecast: MACD indicator for the pair GBP/USD is in the positive area and it goes up, confirming a previous buy signal for the pair. Stochastic
Oscillator is not giving a clear signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.6175 the pair will go to 1.6240 and 1.6300. If the level of 1.6030 is
exceeded, traders' targets will be the levels of 1.5990 and 1.5960. Data on the UK real estate market was released today. According to Rightmove
estimations houses prices declined by 3.2% on monthly basis (+1.3% y/y) in November. The index grew by 2.9% a month earlier.

The situation in the sector continues to be ambiguous. Earlier the LSL/Acadametrics estimations showed that houses prices in England and Wales
went up by 0.3% in October, the rise is going on for six consecutive months, increasing by 6.1% on annual basis; analytics in the real estate sector
contradict one another: Halifax stated that houses prices in October increased by 1.8%, Nationwide insisted that the indicator fell by 0.7%. It is a paradox, but a fact why would houses prices grow rapidly in the country with low level of consumer spending and high unemployment rate. Nationwide economists stressed earlier that if the trend which had started in the early summer would continue in November and December, the prices would have a chance to drop by 1% by the end of the year.

Rightmove clarified that they noticed the oddity in indicators in October; however they assumed that traders deliberately start the overprice to hold
the objects until better time. We would remind that the level of consumer confidence in Great Britain reduced to 52 last month, as per Nationwide against the level of 53. Thus, the indicator fell to the low of 19 months, which indicates negative outlooks for the British economy.

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